New Click Here to Play Diwali Spin and Win and Get Huge Discounts

    Register

    Question

    ……………… is the way of raising funds by issue of shares or of convertible securities by a company to a select group of persons which is neither a public issue nor a rights issue.

    A Bonus Issue Correct Answer Incorrect Answer
    B Raising money through stock exchange Correct Answer Incorrect Answer
    C Private Placement Correct Answer Incorrect Answer
    D Going to general public and asking for issue through local newspaper Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

         Private Placement is the way of raising funds by issue of shares or of convertible securities by a company to a select group of persons which is neither a public issue nor a rights issue. The primary market can raise the funds for the first time through IPO (Initial Public Offer) or through Follow-On Public Offer (all the offers subsequent to the initial public offer). A qualified institutional placement is a private placement of equity shares or securities convertible into equity shares by a listed company to Qualified Institutional Buyers only.

    Practice Next

    Relevant for Exams: